# In the matter of Zytech Solar India Private Limited

> NCLT judgment dated 2025-01-08. Citation: TCN-2025-NCLT-00647. German Solar Asia Pte Ltd filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 8 Jan 2025
- **Citation:** TCN-2025-NCLT-00647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/zytech-solar-india-private-limited-99e43706

## Summary

### Background

German Solar Asia Pte Ltd filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Zytech Solar India Private Limited for non-payment of an operational debt amounting to INR 2,79,15,771.47 as of June 21, 2023. The Operational Creditor claimed to have supplied solar cells based on oral requests from the Corporate Debtor, with payments agreed to be either in advance or on the invoice date. The Corporate Debtor allegedly failed to make payments for supplies since 2019.

## Facts

German Solar Asia Pte Ltd (Operational Creditor) filed a petition against Zytech Solar India Private Limited (Corporate Debtor) under Section 9 of the IBC, claiming non-payment of INR 2,79,15,771.47 as of 21.06.2023 for supplied solar cells. The Operational Creditor and Corporate Debtor maintained a running account since 2017 based on oral requests. The Corporate Debtor failed to make payments since 2019. The Operational Creditor sent an email on 16.12.2021 requesting payment, to which the Corporate Debtor acknowledged the debt and offered to settle for USD 50,000, which was rejected. A demand notice under Section 8 of the IBC was issued on 21.08.2023. The Corporate Debtor replied on 21.09.2023, denying pending dues but admitting that complete payment for invoice

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** A pre-existing dispute must be genuine and not spurious, hypothetical, or illusory. The

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**Reasoning:** The NCLT relied on precedents such as Mobilox Innovations Private Limited versus Kirusa

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**Interpretation:** The existence of a genuine dispute, even if its merits are uncertain, is

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**Application:** The Corporate Debtor's claim of having made payments and the offer to settle

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** German Solar Asia…
- **Respondents:** Zytech Solar…

## Timeline

- **2017-01-01 — Initial Agr…**: Corporate Debtor approached Operational Creditor for supply of solar cells; oral…
- **2019-01-01 — Default in P…**: Corporate Debtor failed to make payments…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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